Yes, but startups are shitty and wavy by nature, it stabilizes with time. While culling the contractors, they might lose sight of something important and get into the next crisis. I don’t think there is any other way around. Sometimes it’s even external factors like wars and financial crises like the dinosaurs of the automobile industry had.
While it definitely depends once your definition of startup... I bet most people in the automotive industry consider it a “startup”. Especially considering the age of the competition, Tesla is a brand new startup company with hyper growth in its plans.